Aurora Loan Services, LLC v. Veatch
288 Ga. 808
| Ga. | 2011Background
- Elsie Veatch died in 1974; her sole heir was Raymond Wesley Veatch, Jr.
- After Veatch Jr.'s death, two forged deeds purported to convey title to Antonio Simpson were recorded in Fulton County (Quitclaim Deed May 19, 2006; Execut executors Deed March 15, 2006).
- A warranty deed from Simpson to Darryl Matthews was recorded November 8, 2006, followed by Matthews' security deed to First Magnus Financial Corporation, later assigned to Aurora.
- On September 5, 2007 Veatch, as administrator of the Veatch Jr. estate, filed an affidavit stating the executors and quitclaim deeds were false and petitioned to quiet title.
- A Special Master found Aurora was a bona fide purchaser for value; the trial court held forged deeds are nullities and cannot convey title; the court vested title in Veatch, unencumbered by Aurora's security deed.
- The Supreme Court affirmed, holding forged deeds are nullities and cannot convey title, overruling prior doctrine that allowed title through a forged deed to vest in subsequent grantees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether forged deeds convey title to any grantee | Aurora argues bona fide purchaser rights apply | Veatch argues forged deeds are nullities and convey no title | Forged deeds are nullities; confer no title |
| Whether Veatch's title is unencumbered by Aurora's security deed | Aurora contends it has a valid security interest | Veatch asserts title should vest free of the forged-deed chain | Title vested in Veatch, unencumbered by Aurora's security deed |
Key Cases Cited
- Brock v. Yale Mortgage Corp., 287 Ga. 849 (2010) (a forged deed is a nullity; cannot convey title; overruled earlier doctrine)
- Roop Grocery Co. v. Gentry, 195 Ga. 736 (1943) (forgery defeats conveyed title; no good title to convey)
- Second Refuge Church, etc. v. Lollar, 282 Ga. 721 (2007) (holds that forged deeds leave no title to transfer)
